Robinhood announced the launch of its own in-house clearing service on Wednesday.
The new service required building a 70-person team at its new “Major Oak” clearing center in Florida.
The two-year effort will allow the zero-fee brokerage to save money and better execute trades for its customers, a brokerage expert told Business Insider.
In an interview, cofounder and CEO Vlad Tenev explained Robinhood’s fight to become the Amazon of personal finance.
Robinhood, the zero-fee stock trading app that helped kickstart a race to the bottom in brokerage fees, has a new weapon in its arsenal as it fights to become the Amazon of personal finance: an in-house clearing system.
The $5.6 billion startup announced Wednesday that it has completed a two-year effort to build and launch its own in-house clearing provider that will allow it to save money and improve trading for its 6 million customers, cofounder and CEO Vlad Tenev told Business Insider.
“This will allow us to not only clear and settle transactions but also the assets of all of our customers without having to depend on any third parties,” Tenev said in an interview. “Over the past five years we’ve reached massive scale, and because we pride ourselves …read more
Source:: Businessinsider – Technology